Bill:

I would much aprecciate your insight on a subject, I 've just noted: in the US, the 10 yr yield as just closed below the the Fed funs rate.
Is it another sign of further troubles ahead?

Thanks, from Portugal...

Bullion,

It could be...might be indicating a significant slowdown of the US economy in 2H2006.

This article helps explain:

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10-Year Yield in Rare Territory
By Tony Crescenzi
RealMoney.com Contributor

6/2/2006 11:48 AM EDT
URL: http://www.thestreet.com/p/rmoney/tcrescenziblog/10289500.html

"The yield on the 10-year note is trading at 5.0% at the moment, the same level as the fed funds rate. This is a significant event, given that the yield on the 10-year note has dipped below the funds rate on only three occasions over the past 16 years. If the yield on the 10-year falls below the funds rate, it would be the first such occasion since January 2001.

In each case, a Fed rate cut followed within a six-month period. The point here, which is one that I have made many times in the past when I was arguing why yields would follow the funds rate higher, is that the market will drive yields below the funds rate only when there's the utmost confidence that the economy will slow.

Such confidence is apparently building up, thanks in part to today's payroll data. An economic slowdown would be welcome in the markets, as it would take pressure off of inflation and interest rates."
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Of course, we're not sure how welcome a slowdown would actually be.

Well, gold was up a little over 1 1/4% while oil was up nearly 3%, the $USD was getting trashed and all competitor currencies were strong in response. To me the gold rally was tepid given what other parts of the board were doing and HUI and XAU responses were as well. So I am thankful that my positions are up over 5% since taking them (XAU=133) , but I am still wary here as new longs are refusing to come into this market so far. In fact, open contracts are shrinking. So count me among your gold "worry-warts".

Looking forward to your WIR.

Bill-

Coxe mentions a BMO report on Base Metals that significantly incrases forward estimates. Do we have/can get this?

Bill & All , Here is New XAU wave count:

http://globalgold.blogspot.com/2006/06/xauusd-spot-gold-elliott-wave-count.html